Financial, Commercial, Regulatory and Operational risks are an inherent element in the trading and physical delivery of commodities.
Our approach to risk is defined by our daily efforts to identify, rationalise and continuously monitor the risks we are exposed to. Risk management is embedded in our critical business activities, functions and processes, while materiality and tolerance for risk are key considerations in our every decision.
By identifying and managing risk in a consistent and disciplined manner we provide certainty and confidence in our business for our employees, shareholders and third-party stakeholders, as well as for all our customers and suppliers with whom we transact.
While our risks are determined and managed on a Group-wide basis, our centralised commercial risk management model enables us to keep our market exposures to acceptably low levels and in particular, reduce price risk arising from timing differences between buying, selling and delivering goods to market.
We have comprehensive risk management systems, a very strong contracts administration team and above all, our trading leaders and key risk managers have many years of experience in the industry.
Running a fully compliant organisation is the bedrock of our business. We have a set of compliance policies and procedures including a detailed policy of business conduct. This is tailored to the risks in our business and designed to ensure that we meet the highest standards of business conduct.
Each operation and division is tasked with developing and maintaining detailed risk management policies or procedures to address specific areas of the Group’s operations, such as occupational health and safety; environmental, community and market safeguards; commercial activities; insurance, foreign exchange and interest rate exposures.
Where we participate in joint ventures we have varying degrees of influence and control. We seek to influence our partners where necessary, encouraging them to adopt standards at least equivalent to our own.